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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: WallStBum who wrote (207)	11/20/1997 4:58:00 PM
From: Gary	Read Replies (1) \| Respond to of 5810

Bum Losses on the sale of stock or securities (or contract or option to acquire or sell such) are not deductible if, within a period beginning 30 days before the sale and ending 30 days after the date of the sale, the taxpayer acquires or has entered into a contract or option to acquire stock or securities that are substantially identical. Stocks or securities of the same issuer are substantially identical if they are same in all important particulars. The above info is from Reasearch Institute of America. I think you would have a wash sale under the circumstances you described. LOL Gary

To: WallStBum who wrote (207)	11/20/1997 10:52:00 PM
From: Colin Cody	Respond to of 5810

Warrants to buy a stock are NOT "substantially identical" to the stock itself. Therefore if you SELL the wts rather than CONVERT them, you would IMO, have a recognized TAX-LOSS. . Similar to Bond Swaps that create a deductible tax loss. . Colin

To: WallStBum who wrote (207)	11/22/1997 3:59:00 PM
From: Nasty P	Read Replies (1) \| Respond to of 5810

Bum, I agree with Cody re: warrants and underlying stock aren't identical securities. I can't cite the reference (ask Cody, he ALWAYS cites his answers, right Cody?) but Larry McMillan's book specifically states that options and underlying stock are not identical securities (p.819) Options and warrants are pretty much the same except the issuer, so IMO you should be able to take the loss even if you use the proceeds to immediately purchase the underlying stock. Good luck